Effective Organizational Change Management Strategies

The only constant in any industry is change, and the business world is no different. From changes at the operational levels to transitions between environments and approaches, leaders in every sector find themselves in the position to guide their teams through the process of moving from one situation to another.

Organizational change management (OCM) is an important management technique to understand and infuse into your own leadership style. It allows managers and their employees to adapt in dynamic business environments, keeping themselves and their organization flexible enough to survive and thrive in a tumultuous market.

Learn all about the organizational change management process from the manager’s perspective, including how to involve the team, anticipate challenges that could arise from upcoming changes, and implement the most effective organizational change management frameworks. Discover the best ways to prepare to manage organizational change in a business career and how the online Master of Business Administration (MBA) program at Aurora University can equip you for any leadership hurdles along the way.

What Is Organizational Change Management?

Organizational change management is the process of leading an organization through fundamental changes, both small and large. It can refer to internal changes within the organization, adjustments after a merger or another significant shift, or even just alterations to day-to-day operations at the team or department level.

The objective of OCM is to guide team members and groups through transitions with as little disruption as possible. Managers accomplish this with careful planning and collaboration, clear communication with stakeholders, and close work with their teams to implement changes. A successful organizational change management process leads to maximum team member satisfaction and a timely acceptance of the required change or changes.

Organizational Change Management vs. Organizational Behavior Management

While organizational change management (OCM) and organizational behavior management (OBM) sound similar, they’re not exactly the same concept. Organizational change management focuses on managing short-term transitions within an organization, while organizational behavior management is a long-term process aimed at changing the fundamental behavior of people in a work environment.

Project managers and chief executive officers may use OCM to lead an organization through a project with a clear end date or to implement systemic changes in a short time period. On the other hand, OBM is a common approach for managers in human resources, or those who infuse behavioral science into their long-term leadership style.

What Are the Organizational Change Management Models?

Organizational change management models in the business world emerged in the mid-20th century as industry leaders recognized the need to standardize the change and transition processes within their organizations. As a result, you’ll find many organizational change management frameworks based on social and applied psychology intended to guide leaders and their teams through changes in the workplace as they work toward organizational goals.

Lewin’s Three-Step Change Model

Considered the father of organizational change, psychologist Kurt Lewin began championing the value of organizational change management in his work on social change in the 1940s. Influential and revolutionary, Lewin’s change model is among the most well-known organizational change models in the business world.

The three overarching steps in Lewin’s model are:

1. Unfreezing: Prepare for change
2. Movement: Make the change
3. Refreezing: Solidify the change

This organizational change management framework is especially effective when an institutional change occurs on a large scale, including new technology implementation, policy initiatives, or a major restructuring of a team or department. It maximizes employee buy-in and aligns both leaders and team members.

Kotter’s 8 Steps for Leading Change Model

Business leader John P. Kotter took Lewin’s model even further with Kotter’s 8 Steps model for organizational change management. Popular in marketing schools as well as general MBA programs, this model breaks the organizational change management process into eight steps:

1. Create urgency
2. Build a coalition
3. Form a vision
4. Enlist volunteers
5. Remove barriers
6. Find short-term wins
7. Sustain acceleration
8. Institute change

Managers use this OCM model when a significant change may disrupt company culture or morale. It strengthens the relationship between the planning team and brings team members in at key moments in the change process, allowing all concerns to be addressed before the change sets in.

McKinsey 7-S Model

Created by Thomas J. Peters and Robert H. Waterman Jr. at McKinsey & Company, the 7-S framework of OCM emphasizes coordination as a critical component of the organizational change management process. It places seven key concepts in direct and coordinating relationships with each other. The “S” concepts are:

1. Style
2. Skills
3. Systems
4. Structure
5. Staff
6. Strategy
7. Shared values

The 7-S model is a good choice for organizations looking to calibrate performance and align institutional values. It’s also an opportunity for new managers or leaders to work with their teams to get on the same page about near-term goals and objectives.

ADKAR Model

Jeff Hiatt, the founder of the change management company Prosci, developed the Prosci ADKAR Model. This model is based on a five-step process that prompts leaders to be mindful about upcoming changes in the following ways:

1. Awareness
2. Desire
3. Knowledge
4. Ability
5. Reinforcement

Many managers use the ADKAR model for smaller changes that affect individuals or groups within an organization. It can be a helpful way to address the potential emotional impacts of change on a current system and build connections between leaders and the teams they manage.

Bridges Transition Model

William Bridges introduced the Bridges Transition Model in his 1991 book Managing Transitions. Like earlier organizational change management frameworks, this model applies psychological concepts and practices to the process of organizational transition. It poses that there are three stages of any organizational transition:

1. Ending the process a team already knows
2. A neutral zone while the transition takes place
3. Beginning the new process as part of an everyday routine or procedure

This model focuses on the individual’s experience of transitioning out of something they’re familiar with and introducing change in a sensitive, measured way. Many organizations use this model during major transitions that affect an entire company or team, such as mergers or staff restructuring.

Organizational Change Management Strategies

Once leaders identify the need for change or an upcoming transition within an organization, they can begin implementing organizational change management strategies to ease the professional and emotional workload on both the leadership team and employees. Follow these protocols when designing and refining your organizational change management plan:

• Assess the need for change and the expected impact.
• Make the vision and the company objectives clear to all stakeholders.
• Include employee input to increase buy-in and generate implementation ideas.
• Offer more training and support for leadership team members and human resources managers.
• Be transparent in every step of the change process.
• Keep communication clear and consistent to avoid surprises on either end.
• Allow team members to express their needs with the expectation that they’ll be addressed.
• Measure progress before, during, and after the transition, and adjust as needed.

Connecting an upcoming change with a company’s long-term goals is always an effective way to navigate this complex process. Employees or individuals who are more affected by the change may also value being involved earlier in the planning and having more opportunities to provide feedback throughout the organizational change management process.

What Is the Role of Leadership in Change Management?

Above all, managers should maintain a strong leadership style throughout the entire organizational change management process. While the change may be taxing on the leadership in the short term, a successful implementation can lead to long-term organizational success and a more cohesive team.

Leaders can help their teams excel by guiding vision and setting expectations, managing resistance, and fostering trust at every level of the organization. These leadership skills promote accountability and collaboration, two key elements of transformational leadership and any organizational transition.

Advancing Change Management Skills at Aurora University

To become a master of organizational change management and various management styles, begin with an MBA degree from a high-quality program like Aurora University’s. With a rigorous curriculum, affordable tuition, flexible online schedule, and an experienced faculty and support staff ready to help, AU is prepared to take your managerial skills to the next level.

AU’s programs are accredited by the Higher Learning Commission (HLC). With an MBA comes increased salary potential and a greater number of career opportunities, not to mention the chance to pivot to a new role with the leadership skills you’ve developed. You’ll also receive state-of-the-art instruction on 21st-century technology tools that have become ubiquitous in the business world, as well as practical education in financial management, ethics, decision-making, leadership, and organizational behavior.

Become a Leader Ready for Change With the Right Degree Program

Managing change in an organization can be the ultimate test of a manager’s leadership skills. With the right organizational change management strategies, the ability to collaborate with your leadership team, and a flexible and introspective mindset, you will be equipped to navigate any transitions that come your way in your future business career.

Prepare to lead an organization in any industry through small and large changes with AU’s online MBA program. To learn more about the next step in your career, contact a student engagement specialist.